(Reuters) - Lynas Rare Earths posted a 13.3% drop in fourth-quarter revenue on Tuesday as higher Chinese production piled more pressure on prices.

The world's largest producer of rare earths outside of China posted sales revenue of A$136.6 million ($90.72 million) for the three months ended June 30, compared with A$157.5 million a year earlier.

The average selling price for the rare earth miner's product range came in at A$42.3 per kilogram (kg) in the quarter, compared with A$43.5 per kg a year earlier.

Market prices remained low despite a slight improvement in China domestic demand, the company said on Tuesday.

It produced 1,504 rare earth oxide tonnes (REOt) of Neodymium and Praseodymium (NdPr), its main product, during the quarter, compared to 1,864 REOt a year ago.

Rare earths are a group of metals whose strong magnetic properties make them critical to sectors including electric vehicles and defence because of the energy efficiencies they allow.

($1 = 1.5058 Australian dollars)

(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Sriraj Kalluvila)